President Ranil Wickremesinghe says Govt expects to restructure USD 17 bn out of USD 41 bn of foreign debts within 5 years: asserts that accordingly, local debt must also be restructured: analysts point out that USD 13 bn of the foreign debt referred to by the President is not subject to re-structure as it is due to “priority” creditors (WB, ADB & IMF) and therefore only USD 28 bn will be eligible for re-structure: analysts further say that expecting the balance private & bi-lateral creditors of USD 28 bn to accept a 60% “haircut” of USD 17 bn is a very unlikely proposition.
President Ranil Wickremesinghe says restructuring of domestic debt will not affect the Member balances of the EPF & ETF as well as the rate of return paid in the past: based on the President’s comments, analysts fear the Govt would default on the interest payment of approximately 20-25% due for the year 2023 on the balance of the Members’ accounts as at end-Dec’22.
President Ranil Wickremasinghe says the local debt restructuring will not affect the deposits in the banking system & will not affect any interest on bank deposits that is currently being paid: analysts point out that when the Govt debt is re-structured, there is a distinct possibility of the default by the Govt affecting the liquidity and stability of the banks.
Central Bank’s T-Bill auction yesterday fails miserably with only Rs.55 bn (42%) accepted out of Rs.130 bn: LKR continues to depreciate for the 3rd consecutive day and tumbles to Rs.316.72 per USD: Stock Market loses steam and ASPI crashes by 0.69%.
Customs Senior Director Sudaththa Silva says 5 local traders detected with gold filled in plastic capsules inserted in their rectums, while trying to leave the country: Customs officials retrieve 15 such capsules that altogether bore 5,650 grams of gold in a “gel” like solution, valued at Rs.107 mn.
Speaker Mahinda Yapa Abeywardana convenes a special session of Parliament on Saturday, 1st July at the request of the PM: informed sources say Parliament is to be convened on Saturday to obtain approval for the domestic debt restructuring process: analysts point out that similar approval was not sought when certain Sri Lankan authorities first announced Sri Lanka’s debt default and restructuring on 12th April 2022.
SLPP MP Namal Rajapaksa says the determination of eligible recipients for the “Aswesuma” benefits has caused great injustice to those already receiving Samurdhi: SJB MP S M Marikkar says the Govt has curtailed the Samurdhi benefit to implement the “Aswesuma” to deceive the people: State Minister Anupa Pasqual says people must not to be victims of politically motivated agendas launched by various groups to stop the “Aswesuma” welfare plan.
Health Minister Keheliya Rambukwella issues gazette to reduce prices of 60 types of medicines by 16%.
Attorney General informs Court of Appeal that the Health authorities have taken a decision to raise the retirement age of Consultant Specialist Doctors to 63 years.
Sri Lanka beats Scotland by 82 runs in ICC Cricket World Cup Qualifier: Sri Lanka – 245 all out (49.3 overs): Pathum Nissanka 75, Charith Asalanka 63: Scotland – 163 all out (29 overs): Maheesh Theekshana 41/3, Wanindu Hasaranga 42/2.
The Ceylon Chamber of Commerce, a leading business association in Sri Lanka, emphasizes the importance of patience and trust in the ongoing domestic debt restructuring process. Echoing the Central Bank of Sri Lanka, the chamber highlights that maintaining stability in the financial system and safeguarding the interests of depositors are top priorities.
It is crucial for all stakeholders to allow for a comprehensive and meticulous examination of the proposed debt restructuring plan. Constructive dialogue based on the final document is essential to achieve meaningful consensus while keeping the national interest at the forefront.
The chamber urges all political parties and concerned stakeholders to act responsibly and await the finalization of the debt restructuring plan. This step is integral to the broader agenda of ensuring debt sustainability and facilitating other necessary reforms. While acknowledging the concerns expressed following the government’s announcement of its intention to restructure domestic debt, the chamber emphasizes the need to approach the matter with sensitivity and avoid misinformation and speculation that can fuel uncertainty among the public.
Several spells of showers will occur in Western and Sabaragamuwa provinces and in Kandy, Nuwara-Eliya, Galle and Matara districts.
A few showers will occur in North-western province.
Showers or thundershowers may occur at a few places in Uva province and in Ampara and Batticaloa districts during the evening or night.
Fairly strong winds about (40-45) kmph can be expected at times in Western slopes of the central hills, North-central province and in Puttalam, Hambantota and Trincomalee districts.
General public is kindly requested to take adequate precautions to minimize damages caused by temporary localized strong winds and lightning during thundershower.
Inaugurating the ‘Laksiyane Mandiraya’ Administrative Complex in Gampaha, President Ranil Wickremesinghe provided reassurance that the restructuring of domestic debt in Sri Lanka would not have any adverse effects on public funds, including the Employees’ Provident Fund (EPF). He emphasized that the rate of return for superannuation funds would remain unaffected by the debt restructuring measures.
Addressing concerns about the stability of the country’s banking system, President Wickremesinghe affirmed that both public and private banks would remain unthreatened by the restructuring of domestic debt. He specifically mentioned that the deposits of over 50 million bank depositors would not be impacted, and there would be no changes to the current interest rates offered on bank deposits.
To expedite the debt restructuring process, proposals for both foreign and domestic debt restructuring will be presented to the Cabinet on the same day as the inauguration of the complex.
The President highlighted the urgency of restructuring Sri Lanka’s debt, as failure to do so would result in the public debt surpassing 100% of the Gross Domestic Product (GDP) by 2035. He also mentioned that foreign creditors have expressed their agreement to participate in the debt restructuring process.
President Wickremesinghe stressed the importance of restructuring both external and domestic debt to ensure debt sustainability in Sri Lanka. He acknowledged the burden carried by foreign creditors, noting that the country is expected to receive 17 billion US dollars from them over the next five years. The President also emphasized the need for local creditors to contribute to the debt restructuring efforts.
The proposed debt restructuring plan aims to safeguard public bank deposits and protect the depositors of all banks regulated by the Central Bank. President Wickremesinghe assured that the proposed method of domestic debt restructuring poses no harm to bank depositors and will not lead to a collapse of the banking system. On the contrary, it will pave the way for a restructuring process that can rebuild the economy.
The President highlighted his discussions with international figures during his visit to France, including Commonwealth Secretary General Patricia Scotland, IMF Managing Director Kristalina Georgieva, Netherlands Deputy Prime Minister and Finance Minister Sigrid Kaag, US Treasury Secretary Janet Yellen, and Japanese Foreign Minister Yoshimasa Hayashi. They expressed their commitment to assisting Sri Lanka in its economic recovery and debt restructuring.
President Wickremesinghe also mentioned his telephone conversation with Indian Finance Minister Nirmala Sitharaman, who expressed India’s intention to positively contribute to Sri Lanka’s debt restructuring and economic stability. Detailed discussions on the matter are expected to take place during the President’s upcoming visit to India.
Additionally, Foreign Minister Ali Sabri’s visit to China aimed to enhance bilateral relations and strengthen economic ties between the two countries. Minister Sabri held fruitful discussions with China’s Foreign Minister, Mr. Qin Gang, focusing on deepening cooperation.
During the visit, President Wickremesinghe met with the Chinese Finance Minister, Liu Kun, in Beijing, where he was briefed on China’s economic stabilization and progress plan. China’s Exim Bank Chairman, Wu Fulin, and other officials appointed for the purpose of restructuring Sri Lanka’s foreign debt, expressed their commitment to contributing to the debt restructuring process.
The inauguration of the Administrative Complex was attended by Prime Minister Dinesh Gunawardena, several ministers and state ministers, Gampaha District Development Committee Chairman, Members of Parliament, and other dignitaries.
Speaker Mahinda Yapa Abeywardene has issued a special Gazette notification, summoning the Parliament to assemble at 9.30 a.m. on Saturday, July 1st. The notification comes in light of the impending debt restructuring proposal, scheduled to be presented in the Parliament for adoption this week, according to political sources.
In an effort to ensure the presence of ruling party MPs, an earlier notice was circulated on Sunday (25) instructing them to remain in Colombo and cancel all other engagements, including overseas travel. This strategic move highlights the significance attached to the debt restructuring plan.
Meanwhile, President Ranil Wickremesinghe has outlined a comprehensive timetable for the proposal. He stated that the debt restructuring program will be submitted to the Cabinet on Wednesday, followed by presentations in the parliament and before the Committee on Public Finance (COPF) on Friday, June 30th.
During an interview with FRANCE 24 at the Summit for a New Global Financing Pact in Paris, President Wickremesinghe emphasized that the program will undergo parliamentary debate on Sunday and ultimately gain approval from the parliament.
The proposed debt restructuring initiative holds great importance for the nation’s financial stability, and its progress through the parliamentary process marks a crucial step toward addressing the economic challenges faced by the country.
Australia Sri Lanka Parliamentary Friendship Group was relaunched in Canberra on 19June 2023 at the Sri Lanka High Commission. This group which has been in existence earlier and had been dormant for the last 3-4 years was relaunched under the Chair of Member of Federal Parliament, Sri Lanka born Cassandra Fernando of the Labour Party and Vice Chair Senator James McGrath of the Liberal Party.
The important feature of the event was the attendance of Hon. Andrew Giles, Minister for Immigration, Citizenship, Migrant Services and Multicultural Affairs of Australia who spoke of Australia’s multicultural population and the Australian Government policy to address the needs of the expatriate communities to help especially new comers to integrate into the Australian society. In that context he stated that the Friendship Group could act as a catalyst to link the two countries and that as the Minister for Multicultural Affairs he is happy to support such initiatives.
The High Commissioner while welcoming the Minister and the Members of Parliament present at the event and also those who could not attend the function due to Parliament Proceedings, stated that the High Commission is keen to work closely with the federal Members of Parliament in order to strengthen ties between Sri Lanka and Australia including with the Sri Lanka-Australia Parliamentary Friendship Group already set up in the Sri Lanka Parliament and explore areas of cooperation for the benefit of the two countries. High Commissioner added that she is happy and proud to have two ladies with Sri Lankan connections for the first time in the Australia Federal Parliament, Cassandra Fernando and Dr. Michelle Ananda-Rajah of Sri Lankan decent.
In her address, the Chair, Cassandra Fernando referred to her close affinity to Sri Lanka and her desire to see close cooperation between her country of birth and Australia. She spoke of the need to create a greater understanding between the two countries and to promote bilateral relations. The Vice Chair, Senator McGrath of the Liberal Party in his remarks added that his party would also support any initiatives taken by the Friendship Group.
As the Honorary Consul for Sri Lanka in Queensland Mr. Anton Swan is completing his tenure of office having served over 30 years as Honorary Consul, the occasion provided an opportunity to bid farewell to him. The High Commissioner spoke of some of the highlights of his 50 years in Australia and the Medal of the Order of Australia (OAM) he has received from the Australian Government and the services he has rendered to Sri Lanka for over 30 years.
In appreciation and recognition of his services to Sri Lanka in an honorary capacity, Mr. Swan was presented with a plaque. Mr. Swan too spoke on his work and stated that he was happy to have served his motherland, Sri Lanka and the Sri Lankan Community.
During the event, a video clip sent by the Sri Lanka Tourism Promotion Bureau (SLTPB) on Sri Lanka and especially on the tourist attractions was shown to the audience.
A Ceylon Tea stall was also set up to promote ‘Ceylon Green Tea’ given the increasing demand of Australians for sustainable, nutrient rich and a healthy drink. The Sri Lanka Tea Board sponsored ‘Ceylon Green Tea Stall, while ‘Dilmah’, a prominent Ceylon Tea exporter in the Australian marked provided gift tea (flavoured green tea) to the invitees. Ceylon tea promotion videos depicting ‘sustainable-grown’ variety of Ceylon tea for the world market were screened at the reception. The event was held alongside a live demonstration on ‘Ceylon Green Tea Tasting Session’ by the staff of the Mission.
A Sumptuous Sri Lankan Cuisine including hoppers catered by Sri Lankan chefs in Canberra was enjoyed by the participants.
Foreign Minister Ali Sabry will lead a delegation to participate at the World Economic Forum to be held in Tianjin, China from 27 to 29 June 2023.
The Forum themed ‘Entrepreneurship: The Driving Force of the Global Economy’, will provide a platform for dialogue among political and business leaders from over 90 countries across the globe, which is expected to advance regional and global collaboration on economic challenges. Minister Sabry is scheduled to participate at the Roundtable titled ‘Preventing a Lost Decade’ and the Stakeholder Dialogue on ‘How to Power Tomorrow’s Economy’.
During the visit, the Foreign Minister will hold bilateral discussions with Chinese Foreign Minister Qin Gang and other high level dignitaries. Minister Ali Sabry will also interact with the Sri Lankan community living in Beijing as well as the Sri Lankan students in Tianjin University.
The Government of Sri Lanka has appointed Lapo Baroncelli as the Honorary Consul of Sri Lanka to Florence, Italy (with consular jurisdiction over the Tuscany region).
Ambassador Jagath Wellawatte handed over the Commission of Appointment duly signed by the Minister of Foreign Affairs of Sri Lanka to Lapo Baroncelli on 08 June 2023 at the Embassy.
There are around 8000 Sri Lankans living in the Tuscany region and the Honorary Consul will provide consular assistance and services to them.
The Honorary Consul will also assist and support the Sri Lankan Embassy in Rome to promote economic, business, tourism and cultural relations in the Tuscany region of Italy.
Opposition Parties Stand United for Careful Domestic Debt Restructuring
In a press conference held at the Leader of the Opposition’s office, MP Harsha de Silva, expressed his thoughts and suggestions regarding the upcoming domestic debt-restructuring plan in Sri Lanka. He divulged that opposition parties, while cautious about the potential consequences, would discuss the need for careful domestic debt optimization if deemed absolutely necessary. Tomorrow, the opposition parties are scheduled to meet and discuss their stance on this crucial issue, which has garnered significant attention nationwide. The government plan is set to be presented to the Cabinet on the 28th and will subsequently undergo deliberation in the Committee on Public Finance over the following two days. Pending agreement at the Party Leaders’ meetings, a special parliamentary session is planned for the weekend of July 1st and 2nd to debate the plan.
Cautionary Approach Highlighted from the Start
MP Harsha highlighted the importance of a cautious approach toward domestic debt optimization. Their blueprint, published last year and revised earlier this year, stressed the need to guarantee the stability of Sri Lanka’s financial sector and prevent any unfair treatment of depositors, particularly the EPF and ETF. The Opposition firmly opposes any haircut on domestic debt and warned against it. He referred to a haircut as a ‘Do Not Cross’ line.
Strong Opposition to Damaging Measures, Willingness to Act for the Nation
He said while his party was totally opposed to any plans that include a haircut on domestic debt, they remain committed to protecting the interests of the nation. They emphasize the importance of fair treatment for pension funds and depositors without causing further harm to the economy. Their primary focus is on safeguarding the country’s interests and ensuring that any necessary measures are implemented in a responsible and cautious manner.
Urgent Need for Economic Growth
Sri Lanka’s economy is contracting daily, regressing to the GDP per capita levels in 2013. To achieve the status of a developed country, as outlined by the President, Sri Lanka needs to sustain a minimum growth rate of 6.5% annually from 2027 to 2048. Merely maintaining the current pace or IMF projected 3% by 2027 will not be sufficient to propel the nation forward. Additionally, the country faces challenges such as reduced demand in global markets and the displacement of low-skilled labor due to technological advancements and automation.
The Promise of Domestic Debt Optimization
The primary advantage of pursuing a domestic debt optimization program lies in the reduction of substantially increased interest rates, allowing the economy to regain stability and promote growth. MP Harsha emphasized that the focus should be on optimizing domestic debt rather than restructuring it entirely. The government has indicated that only treasury bonds will be subject to optimization, not treasury bills. Thus, as treasury bonds carry higher risk, they demand a risk premium. Lowering the risk through the debt optimization program will subsequently lead to a decrease in interest rates, benefiting small and medium-sized enterprises (SMEs) and other businesses, revitalizing the economy. This urgency underscores the importance of implementing the domestic debt optimization plan as soon as possible.
Commitment to Protecting People and Creditors
MP Harsha de Silva and the opposition parties are prepared to draft laws and regulations in Parliament to safeguard the interests of the people and creditors. This commitment aims to ensure that any domestic debt restructuring measures are conducted in a manner that prioritizes the well-being of all stakeholders involved. They emphasize the need for transparency and accountability throughout the process.
Reviving the MSME Sector
One of the potential positive outcomes of an effective domestic debt optimization program would be the revival of the Micro, Small, and Medium Enterprises (MSME) sector. MP Harsha highlighted the importance of providing support and opportunities for these businesses, which are currently facing significant challenges. A well-executed debt optimization program could help uplift the MSME sector from its current state and foster growth and economic recovery.
As Sri Lanka grapples with the pressing issue of domestic debt, MP Harsha and the opposition parties stress the importance of careful consideration and a cautious approach. They stand united in their determination to protect the interests of the nation while exploring viable strategies for domestic debt optimization. By striking the right balance between economic stability, fair treatment of depositors, and sustainable growth, Sri Lanka can overcome its challenges and pave the way for a brighter future.
The Ceylon Electricity Board (CEB) is thrilled to announce the upcoming launch of the next phase of our e-Billing system, effective from the 01st of July, 2023.
During this phase, customers residing in the Dehiwala, Kelaniya, and Sri Jayewardenepura areas will exclusively receive their electricity bills in a digital format, either through SMS or email. This marks the discontinuation of the conventional practice of issuing printed paper bills.
We also encourage all our customers nationwide to promptly register for this convenient service, as the issuance of printed paper bills will gradually be suspended in the coming months.
To register via SMS, please type REG<space>followed by your A/C Number and send it to 1987.
To register online, please visit http://ebill.ceb.lk and follow the instructions.
We kindly request your attention and cooperation to ensure the successful implementation of the e-Billing system. This initiative is expected to save approximately 100 million sheets of paper annually. In light of this significant environmental impact, we invite all our customers to join us in embracing this digital transformation and take advantage of the CEB’s digital services ahead of the mandatory rollout.
